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October 9, 2024
Court Reduces Attorneys’ Fee Request 50% Due To Block Billing
On September 5, 2024, Justice Melissa A. Crane declined to award plaintiff the full amount of requested attorneys’ fees and reduced the requested amount by 50%. In EXRP 14 Holdings LLC v. LS-15 Ave LLC, Index No. 652698/2022, the Court had previously granted plaintiff’s motion for sanctions, ordered defendant to reimburse plaintiff for the reasonable costs of making a prior motion, and directed plaintiff to submit supporting documentation for its fee request. In making its 50% reduction, the Court explained: Read More
May 6, 2024
Court Determines Amount of Contractual Attorney’s Fees Due Under Prior Ruling on Fee Liability
On April 5, 2024, in Caelen Invs. LLC v. Notias, Index No. 654142/2020, Justice Joel M. Cohen awarded $700,000.00 in contractual attorney’s fees and costs to Plaintiff in a suit for breach of a Loan Agreement. Having earlier prevailed on summary judgment and on liability for costs and fees, Plaintiff sought a total award of $838,414.56 ($818,391.00 in fees and $20,023.56 in costs.). Read More
December 22, 2023
Court Denies “Fees on Fees” and Reduces Attorneys’ Fees Award Based on Duplicative and Excessive Work
On October 26, 2023 Justice Melissa A. Crane, of the New York County Commercial Division issued a decision in Newark Rehabilitation Ctr., PA v Simela, Index No. 651425/2022, 2023 NY Slip Op 33838(U), awarding plaintiff’s attorneys’ fees, but reducing the amount of fees after an inquest. First, the Court declined to award plaintiff’s attorneys fees incurred in making the fee application, holding that this would be an “impermissible award of fees on fees,” which “must be denied” “[a]bsent any statute or agreement allowing fees on fees,” which was not present in this case. The Court further reduced the remainder of the fees requested, finding that there were numerous instances of duplicative and excessive billing, explaining: Read More
November 8, 2023
Court Sets Hearing For Determination of Attorney Charging Lien
In a Decision and Order, dated October 3, 2023, in Seymour v. Hovnanian., Index No. 154579/2016, Justice Melissa Crane set a hearing on plaintiff’s former counsel’s motion to enforce its statutory charging lien. The Court explained: Read More
October 23, 2023
Court Awards Reduced Attorneys’ Fees Where Fee Submission is Not Reasonable
On October 3, 2023, Justice Melissa A. Crane, of the New York County Commercial Division issued a decision in Fuks v. Rakia––– Associates, Index No. 122768/1998, granting defendant’s request for attorneys’ fees, but reducing the amount of fees requested by 50%. In a prior order, the court had permitted the defendant to seek reasonable attorneys’ fees incurred solely in prosecuting a prior claim for a constructive trust, as permitted by the partnership agreement. However, the defendant’s motion for attorneys’ fees failed to distinguish between fees incurred prosecuting that claim and the instant action, and also improperly included block billing and other issues. The Court thus reduced the fee award, explaining: Read More
April 10, 2023
Unconditional Guaranty is Instrument for Payment of Money Only Within the Meaning of CPLR 3213 Despite Indemnification Provision
On March 27, 2023, Justice Margaret A. Chan of the New York County Commercial Division issued a decision in HCC Insurance Holdings, Inc. v. Athenium Analytics LLC, 2023 N.Y. Misc. LEXIS 1317. The Court held that an unconditional guaranty on a note was an instrument for the payment of money only within the meaning of CPLR 3213, even where the guarantee, in the preamble and within a provision providing for indemnification, including the word “performance.” The Court explained: Read More
March 22, 2023
Fee Shifting Provision in Partnership Agreement Cost Plaintiff Over $750,000
In a Decision and Order, dated February 17, 2023, in Gibbs v. Holland & Knight, LLP, Index No. 159345/2014, Justice Andrew Borrok of the New York County Commercial Division denied a former partner’s motion to vacate the arbitrator’s award of attorneys’ fees and costs to defendant law firm and granted defendant’s cross-motion to confirm the final award even though plaintiff prevailed on one discrete issue in the arbitration. The Court explained: Read More
March 17, 2023
Attorneys’ Fees Award Reasonable Based on Work Completed and Result Achieved
On February 14, 2023, Justice Margaret Chan of the New York County Commercial Division issued a decision in Pacific Premier Bank v. HNI, LLC, 2023 N.Y. LEXIS 647, confirming the report and recommendation of Special Referee Jeremy R. Feinberg awarding plaintiff nearly $1 million in attorneys’ fees and costs incurred in the litigation pursuant to a contractual provision. The Court explained: Read More
February 17, 2023
Sanctions, But Not Striking of Pleadings, Warranted for Failure to Properly Produce or Log Privileged Documents
On January 12, 2023, Justice Melissa A. Crane of the New York County Commercial Division issued a decision in Lis v. Lancaster, 2023 N.Y. Misc. LEXIS 182, permitting the plaintiff to make a motion for sanctions in the form of its reasonable attorneys’ fees in making a discovery motion where the opposing party improperly withheld documents pursuant to the attorney-client privilege without properly logging those documents on a privilege log. The Court denied the motion insofar as it asked the Court to strike the defendants’ pleadings pursuant to CPLR 3126. The Court explained: Read More
February 13, 2023
Order Granting Motion to Dismiss Sufficient to Make Party “Prevailing Party”
On January 13, 2023, Justice Andrea Masley of the New York County Commercial Division issued a decision in Parkmerced Invs., LLC v. WeWork Cos. LLC, 2023 N.Y. Misc. LEXIS 213, holding that a party was the “prevailing party” for the purpose of awarding attorneys’ fees pursuant to a contractual provision permitting the award of fees to the prevailing party where it had obtained an order granting its motion to dismiss the claims against it in its entirety. The Court explained: Read More
February 6, 2023
Fee-Shifting Clause in Contract Does Not Apply to Pre-Suit Fees and Does Not Permit Pre-Judgment Interest Unless Expressly Provided
On January 22, 2023, Justice Melissa A. Crane of the New York County Commercial Division issued a decision in Entech Engineering, P.C. v. Dewberry Engineers Inc., 2023 NY Slip Op 30221(U), holding that the defendant, as prevailing party, was entitled to its attorneys' fees, but refusing to award fees for work done before the lawsuit was filed and refusing to award pre-judgment interest on the amount of the fees, explaining: Read More
December 30, 2022
Acknowledgement of Conflict Insufficient to Support Claim for Disgorgement of Fees
In a Decision and Order, dated December 8, 2022, in Marcum LLP v. L’Abbate, Balkan, Colavita & Contini, L.L.P., Index No. 151586/2021, Justice Joel Cohen of the New York County Commercial Division, among other things, dismissed plaintiff’s claim to recover legal fees paid in connection with allegedly negligent work but not plaintiff’s claim for compensation for its increased legal expenses arising out of defendant law firm’s late withdrawal as counsel. The Court explained: Read More
August 17, 2022
Court Holds Defendants In Contempt For Failure To Segregate Funds
In a Decision and Order dated July 29, 2022, in Lotte Hotel New York Palace, LLC v. Anthony J. DiGuiseppe, P.C., 2022 N.Y. Slip Op. 32606(U), Justice Andrea Masley held defendants in contempt regarding their failure to place certain funds in a segregated account. The Court further awarded plaintiff sanctions against the defendants in the amount of plaintiff's costs and reasonable attorney's fees incurred in prosecuting the action. Read More
July 29, 2022
Attorneys' Fees Awarded Even in Absence of Itemized Time Records
On May 7, 2022, Justice Andrea Masley of the New York County Commercial Division issued a decision in Continental Industries Group, Inc. v. Ustuntas, 2022 N.Y. Slip Op. 31525(U), awarding attorneys' fees to defendants even when defendants' counsel did not submit hourly or line-item invoices, explaining: Read More
May 2, 2022
Plaintiff Sanctioned and Ordered to Pay Defendants' Attorneys' Fees for Making a Frivolous Motion for Reargument and Renewal
On April 12, 2022, Justice Jennifer Schecter of the New York County Commercial Division issued a decision in Cattan v. Ermotti, 2022 NYLJ LEXIS 367, sanctioning the plaintiff and ordering it to pay the defendants' attorneys' fees incurred in opposing the plaintiff's motion for reargument and renewal of the court's dismissal order based on a forum-selection clause, explaining: Read More
December 29, 2021
Second Department Distinguishes Treatment of Claims and Damages against Insurance Company in Breach of Duty to Defend Case
On November 17, 2021, in East Ramapo Cent. Sch. Dist. v New York Schs. Ins. Reciprocal, 2021 NY Slip Op 0634, the Second Department reversed the decision of Justice Stephen A. Bucaria that dismissed a claim arising from an insurer’s bad-faith denial of coverage and reduced by 65% damages relating to a breach of the duty to defend. The Court explained that in the context of insurance liability litigation, at the pretrial stage courts are reluctant to dismiss complaints alleging bad faith and damages for breach of the duty to defend, unlike in a fee shifting case, are presumed reasonable: Read More
December 19, 2020
Plaintiff Prevailing Party, Entitling it to Fees, Even Though it Only Was Awarded Nominal Damages
On December 8, 2020, the First Department issued a decision in Quik Park W. 57 LLC v. Bridgewater Op… Read More
June 23, 2020
Trust Entitled to Fees in RMBS Put-Back Action Based on Representation and Warranty Breaches
On May 25, 2020, Justice Friedman of the New York County Commercial Division issued a decision in Pa… Read More
June 12, 2020
Court Holds that CPLR 3220 Award Only Available When Matter Has Gone to Trial
On April 7, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Loe… Read More
July 21, 2019
Party Not Entitled to Fees on Fees
On July 8, 2019, Justice Scapulla of the New York County Commercial Division issued a decision in Pa… Read More
July 10, 2019
Arbitrator Did Not Manifestly Disregard the Law in Awarding Prevailing Party Attorney's Fees
On July 2, 2019, the First Department issued a decision in Matter of Steyn v. CRTV, LLC, 2019 NY Sli… Read More
March 13, 2019
Attorney Fee Provision Entitling Plaintiff to Fees Equaling One Third of Award Unenforceable
On February 20, 2019, Justice Cohen of the New York County Commercial Division issued a decision in… Read More
February 7, 2019
Mixed Result Meant that Neither Plaintiff Nor Defendant Was Prevailing Party for Award of Attorneys' Fees Purposes
On January 31, 2019, the First Department issued a decision in Blue Sage Capital, L.P. v. Alfa Lava… Read More
February 6, 2019
Partnership Not Entitled to Recover Fees from Derivative Action Plaintiff When Security for Fees Not Posted
On January 31, 2019, the First Department issued a decision in NWM Capital, LLC v. Scharfman, 2019 N… Read More
December 7, 2017
Court Awards Fees to Prevailing Party But Refuses to Award Fees on Fees
On November 22, 2017, Justice Scarpulla of the New York County Commercial Division issued a decision… Read More
December 5, 2017
Plaintiff Without Standing to Bring Derivative Action Not Entitled to Fee Award Under BCL Sec. 626
On November 29, 2017, the Second Department issued a decision in Sakow v. Waldman, 2017 NY Slip Op. … Read More
November 4, 2017
New York Attorney Rates Found Reasonable in Nevada Litigation
On October 18, 2017, Justice Kornreich of the New York County Commercial Division issued a decision … Read More
October 31, 2017
Fee Award Vacated Due to Trial Court's Failure to Consider All Relevant Factors In Awarding Fees
On October 19, 2017, the First Department issued a decision in EVUNP Holdings LLC v. Frydman, 2017 N… Read More
September 7, 2017
Appellate Court's Costs Award Does Not Bar Application for Fees Under Contract
On August 31, 2017, Justice Ostrager of the New York County Commercial Division issued a decision in… Read More
August 31, 2017
Plaintiff Cannot Get Attorneys’ Fees Under CPLR 3220 Unless Action Goes to Trial
On August 30, 2017, the Second Department issued a decision in Saul v. Cahan, 2017 NY Slip Op. 06391… Read More
July 23, 2017
Plaintiff Awarded Fees Based on Unmistakably Clear Language in Contract
On July 14, 2017, Justice Kornreich of the New York County Commercial Division issued a decision in … Read More
December 25, 2016
Court Awards Fees-on-Fees, But Drastically Cuts Referee's Award
On December 5, 2016, Justice Kornreich of the New York County Commercial Division issued a decision … Read More
September 27, 2016
Contract Entitled Prevailing Party to Fees, But Not Fees on Fees
On September 8, 2016, Justice Ramos of the New York County Commercial Division issued a decision in … Read More
June 23, 2016
RMBS Trustee Plaintiff Entitled to Reimbursment of Attorneys' Fees From Defendant
On June 16, 2016, the First Department issued a decision in U.S. Bank N.A. v. DLJ Mortgage Capital, … Read More
June 18, 2016
What Opponent Paid its Counsel is Relevant In Dispute of Reasonableness of Attorneys' Fees
On June 6, 2016, Justice Oing of the New York County Commercial Division issued a decision in Macy's… Read More
March 25, 2016
Court Awards Attorneys' Fees Based on Unaccepted CPLR 3220 Offer to Liquidate Damages
On March 9, 2016, Justice Demarest of the Kings County Commercial Division issued a decision in Saul… Read More
September 16, 2015
Defendant Not "Prevailing Party" under Fee-Shifting Agreement for Claim Dismissed for Lack of Proper Service
On September 4, 2015, Justice Scarpulla of the New York County Commercial Division issued a decision… Read More
July 15, 2015
Prevailing Party Not Entitled to Fees Under Contract Because Provision Awarding Costs Not Unmistakably Clear
On June 11, 2015, Justice Kornreich of the New York County Commercial Division issued a decision in … Read More
May 31, 2015
Court Awards Attorneys' Fees on Fraudulent Conveyance Claim
On May 21, 2015, Justice Demarest of the Kings County Commercial Division issued a decision in Ohana… Read More
May 14, 2015
Award of Fees Under CPLR 3220 Available Even if Action is Disposed of on a Motion to Dismiss
On May 1, 2015, Justice Demarest of the Kings County Commercial Division issued a decision in Saul v… Read More
April 17, 2015
Settlement Signed By Counsel Binding On Client
In Gordon v. The City of New York, 09 CV 04577 (E.D.N.Y. Mar. 31, 2015), Judge Edward R. Korman gran… Read More
March 13, 2015
Attorneys' Fees Award Reversed for Lack of Proof
On March 10, 2015, the First Department issued a decision in 135 E. 57th St., LLC v. 57th St. Day Sp… Read More
March 4, 2015
Fee Provision in Note Unenforceable Penalty
On February 19, 2015, Justice Sherwood of the New York County Commercial Division issued a decision … Read More
February 9, 2015
Court not Bound by Parties' Agreed-to Formula for the Calculation of Attorneys' Fees
On February 4, 2015, the Second Department issued a decision in Prince v. Schacher, 2015 NY Slip Op.… Read More
